Nov 20 (LBO) – Seylan Merchant Bank said Monday it would float ten year listed debentures to raise long term funds to match its lending portfolio.
The 95 million rupee debenture issue would be the first long-term listed debt instrument in the local market, opening for subscription on November 27, the company said in a statement.
The unsecured subordinated and redeemable debentures will have a par value of 100 rupees each, and will be listed on the Second Board of the Colombo Stock Exchange.
The minimum subscription for this issue will be 100 debentures or 10,000 rupees, while applications in excess should be in multiples of a thousand rupees, redeemable in ten years from the date of allotment.
In Sri Lanka interest rates are highly volatile and can cause people to lose the fixed income they depend on. A long-term debenture issue such as this will allow investors to receive a fixed rate of return over a long period, Rohan Senanayake, Deputy Chairman of SMB, said in a statement.
Investors in these debentures can choose their preferred mode of receiving
their interest and there is no capital loss if held to maturity. T